Striking Greek workers denounced a new wave of austerity on Friday as a demand too far by the IMF and EU, but Finance Minister Evangelos Venizelos told the nation it had to decide within days whether to take the pain and stay in the euro or not.

Police fired teargas as black-masked protesters threw petrol bombs, stones and bottles in central Athens. The biggest police trade union said it would issue arrest warrants for Greece's international lenders for subverting democracy, and refused to "fight against our brothers."

Ministers from a far-right party in Greece's coalition government have offered their resignation to Prime Minister Lucas Papademos, the semi-official Athens News Agency (ANA) said on Friday.

It is now up to Papademos to decide whether he will accept them, ANA said, without citing a source.

The far-right LAOS party, which has refused to vote in favor of a bailout agreement needed to avert a messy default, has four members in Papademos' cabinet.

by anthony.derosa2/10/2012 2:46:38 PM

A defaced Bank of Greece sign is seen during protests against planned reforms by Greece's coalition government in Athens, February 10, 2012. The grafitti says "cops they will eat your children" (referring to the Bank of Greece sign the grafitti entours)

Greece's largest police union has threatened to issue arrest warrants for officials from the country's European Union and International Monetary Fund lenders for demanding deeply unpopular austerity measures.

In a letter obtained by Reuters Friday, the Federation of Greek Police accused the officials of "...blackmail, covertly abolishing or eroding democracy and national sovereignty" and said one target of its warrants would be the IMF's top official for Greece, Poul Thomsen.

A demonstrator is detained by riot police during protests in Athens's Syntagma (Constitution) square against planned reforms by Greece's coalition government, February 10, 2012. [REUTERS/Yannis Behrakis]

by Matthew Keys2/10/2012 3:41:12 PM

"Greeks cannot be hostages and serfs," LAOS leader George Karatzaferis told a news conference. "We were robbed of our dignity, we were humiliated. I can't take this. I won't allow it, no matter how hungry I am.

"Germany decides for Europe because it has a fat wallet and with that fat wallet it rules over the lives of all the southern countries."

by Stephanie Ditta2/10/2012 3:48:35 PM

Euro zone bond yields

by Stephanie Ditta2/10/2012 3:55:57 PM

A woman suffering from teargas passes a defaced Bank of Greece sign during protests against planned reforms by Greece's coalition government in Athens, February 10, 2012. REUTERS/John Kolesidis

Greece's deal on economic reforms designed to help it secure a second EU bailout has sparked protests on the streets of Athens, but euro zone finance ministers are demanding further action before the aid is released.

by natalie.armstrong2/10/2012 4:05:22 PM

Greek Socialist party spokesman urges parliament to back bailout package

ATHENS (Reuters) - Greece's Deputy Foreign Minister Marilisa Xenogiannakopoulou has resigned in protest against tough terms included in a bailout agreement the country needs to avoid default, state television said on Friday.

The move by Xenogiannakopoulou, a member of the socialist party in the national unity government of technocrat Prime Minister Lucas Papademos, follows similar resignations by the socialist deputy labor minister and four far-right ministers.(Reporting by Harry Papachristou)

by Stephanie Ditta edited by anthony.derosa2/10/2012 4:08:23 PM

Greece's socialist party urges lawmakers to back bailout

ATHENS (Reuters) - Greece's Socialist party on Friday appealed to lawmakers to back a bailout package needed to avoid default, after the smaller, far-right LAOS party in the government refused to vote in favor of the unpopular rescue.

"In the crucial parliamentary votes ahead, the national interest requires a responsible stance and positive vote by all lawmakers so that the country can safely get out of the crisis," PASOK party spokesman Panos Beglitis said in a statement.

Two deputy ministers from the Socialist party have already resigned over the bailout, which includes unpopular wage and pension cuts. Several PASOK lawmakers have also threatened to vote it down. (Reporting by Harry Papachristou)

by Stephanie Ditta2/10/2012 4:18:39 PM

Europe stocks suffer worst day since January

European shares recorded their steepest daily fall since January on Friday, with investors ditching banks as fresh cracks appeared in Greece's bid to secure an international bailout and avoid a chaotic default.

(Reporting By Toni Vorobyova)

by Matthew Keys2/10/2012 4:44:16 PM

No amount of prose on the Greek situation can convey what this one picture does.

by SaqibReports2/10/2012 4:44:56 PM

Greece will be better off if bankruptcy is declared - let all the excesses built into the system - get over with - start from scratch - just like Argentina did - otherwise Greece is staring at decades of austerity and hard life.

by Pramod2/10/2012 4:45:00 PM

Portugal watches Greek debt drama with foreboding

(Reuters) - Portugal's economy will shrink as much as Greece's this year, according to IMF projections. The two will have identical current account deficits and the red ink in Portugal's budget will be almost as deep as in Greece's.

But there's also a huge difference: Lisbon enjoys political support that Athens can only dream of. Euro zone leaders seem determined that the slow-motion crash that is Greece will be a one-off, not a template for other strugglers. Full Story

by Stephanie Ditta2/10/2012 5:06:43 PM

The best is the enemy of the better. Europe finance ministers are asking to much now.

by rik2/10/2012 5:07:00 PM

Everyone keeps egging Greece to declare bankruptcy but I have a couple questions? What happens when Greek houses and businesses that were in Euros are now in Drachma not to mention wages and goods? What happens when theres no more money left to pay all those Government employees? You think these protests are bad you haven't seen anything yet if Greece hard defaults.

by u2rlate2/10/2012 5:07:11 PM

BREAKING: Greek government source says there will be no cabinet reshuffle on Friday

by Stephanie Ditta2/10/2012 5:11:23 PM

Rocks, molotov cocktails and tear gas flew threw the air Friday as protesters and police clashed in the streets of Athens, Greece. The violence erupted at the start of a 48-hour general strike against new austerity measures imposed by eurozone finance ministers that would further cut jobs and pay. The Greek parliament is expected to vote on the harsh austerity plan by Sunday or Monday.

by Matthew Keys2/10/2012 5:13:46 PM

Greek PM will not reshuffle cabinet on Friday: source

ATHENS (Reuters) - Greece's technocrat Prime Minister Lucas Papademos will not announce a cabinet reshuffle on Friday, a government official said, playing down speculation of an imminent reshuffle after one minister and five deputy ministers stepped down over an unpopular bailout package.

"There will be no reshuffle today," said the official, who declined to be named. Papademos is expected to hold a cabinet meeting later on Friday. (Reporting by Harry Papachristou)

by Stephanie Ditta2/10/2012 5:18:45 PM

An ordenated default is not possible now, this will be a rought and bloody country bankruptcy.

by whathappens2/10/2012 5:19:16 PM

Breaking point? Greece vs. Argentina

As the crisis in Greece continues, the comparisons with Argentina’s chaotic bankruptcy a decade ago start to look more justified. In Argentina, a bank deposit freeze was the tipping point, triggering mass violent protests. People took to the streets banging pots and pans to protest against an economic collapse that plunged millions into poverty. The government declared a stage of siege and presidents resigned one after another. Greek unemployment and industrial production numbers out yesterday were dreadful but how to they compare to Argentina in late 2001? Full Blog

by Stephanie Ditta2/10/2012 5:26:21 PM

Soundbites from prominent European figures on whether Greece can stay in the euro and avoid a messy default.

by natalie.armstrong2/10/2012 5:35:14 PM

Has anyone here actually read the history of what Argentina had to go through before, during and after their default? I strongly urge you to read the history because if frozen bank accounts, 80% inflation, capital flight, currency devaluation the list goes on sounds like just what Greece needs well then I won't say I told you so when the real fireworks get started.

by u2rlate2/10/2012 5:37:38 PM

Greek PM says we can't allow Greece to go bankrupt

by Stephanie Ditta2/10/2012 5:41:17 PM

Greek PM says we must do whatever it takes to approve bailout deal or face catastrophe

by Stephanie Ditta2/10/2012 5:41:51 PM

Papademos says whoever disagrees with bailout deal cannot stay in the government

Papademos: The program sees return to economic growth in 2013 and GDP growth of 2.5-3 percent in 2014, 2015

by Stephanie Ditta2/10/2012 5:45:03 PM

Here's is a little fact on Greece everyone should bear in mind when thinking about bankruptcy. The service sector contributes 78.3% of Greek GDP of that over half is tied up in tourism. Now ask yourself this, if Greek goes bankrupt and there is mass social unrest how many tourists do you think will visit Greece knowing there saftey could be at risk? If tourism all but dries up in Greece that so heavily depends on tourism anyone want to take a guess what the unemployment figure will be then? Greece and Argentina are two completely different situations, economies and circumstances.

by improvised2/10/2012 5:45:14 PM

Greek PM says anti-bailout ministers must go

ATHENS (Reuters) - Greece must do whatever it takes to approve a bailout deal and avoid catastrophe, Greek Prime Minister Lucas Papademos said on Friday, adding that cabinet members who disagree have no place in the government.

"We cannot allow Greece to go bankrupt," Papademos told a cabinet meeting. "Our priority is to do whatever it takes to approve the new economic program and proceed with the new loan agreement."

"It goes without saying that whoever disagrees and does not vote for the new program cannot remain in the government." (Reporting by Dina Kyriakidou and Harry Papachristou; Writing by Ingrid Melander)

Greek Prime Minister Lucas Papademos (C) arrives for a cabinet meeting in Athens February 10, 2012. Greece must do whatever it takes to approve a bailout deal and avoid catastrophe, Papademos said on Friday, adding that cabinet members who disagree have no place in the government. [REUTERS/John Kolesidis]

by Matthew Keys2/10/2012 6:33:58 PM

Violent clashes erupt between Greek protesters and police outside the Greek parliament as unions strike over a tough bailout program to avoid bankruptcy.

by natalie.armstrong2/10/2012 6:44:59 PM

Greek cabinet approves EU/IMF bailout bill

The Greek cabinet approved on Friday a draft bill committing the country to reforms required by the EU and the IMF in return for a new 130-billion euro bailout Athens needs to avoid a messy bankruptcy, government officials said.

"It was approved," a minister who took part in the cabinet meeting said.

The bill is scheduled to be voted in parliament on Sunday, which would take Greece one step closer to getting the loan.

The EU also wants Greece to identify further 325 million euros of spending cuts and clear commitments by main party leaders that the reforms will be implemented.

BUCHAREST When Romania's leftist government collapsed a year ago amid outrage over a deadly nightclub fire, many people spied an opportunity for sweeping change in a country plagued by corruption and inept public services.

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